From 1979 to 2010, on an inflation-adjusted basis, earnings for women with a college degree have increased by 33 percent, while those of male college graduates have risen by 20 percent (http://www.bls.gov/opub/ted/2011/ted_20110722.htm).
|Section 4: Cost Calculations|
|Microeconomics - Unit 5|
What are the Relationships Between the Various Costs?
Section 3 provides definitions of the important economic costs. Below is a list of the relationships between these costs. Using the abbreviations from the previous section, and using Q as the number of goods or services produced, we have
1. TVC + TFC = TC
Problem: Let's suppose that fixed costs are $300 and variable costs are $900. What is total cost?
Solution: Total cost = $300 + $900 = $1,200
Problem: In the above example, what is average total cost?
Problem: In the following table, a firm has a choice of producing from zero to 4 products. We know some of the costs. Can you calculate the missing values?
|Last Updated on Sunday, 30 December 2012 10:04|